KUALA LUMPUR, May 8 — Lembaga Tabung Haji (LTH) should cancel its contentious agreement to buy land from 1 Malaysia Development Bhd (1MDB) or risk incurring the wrath of the Malays, Perkasa chief Datuk Ibrahim Ali warned today.

The former federal lawmaker said the deal was shrouded with controversy as the land was sold at a price much higher than when it was purchased originally, adding that this appeared to suggest that LTH was bailing out 1MDB.

“LTH should be very careful. That money belongs to Muslims, Malays, those who aspire to perform the hajj. This is not something to toy with, as it is sensitive.

“Why can’t it pick other land? There are so many choices,” he told a press conference here.

“If you can find a way, cancel it, I suggest that would be the best thing to do,” he added.

The Perkasa chief also asked why LTH, a government-linked company, did not use the power it has under the Land Acquisition Act to purchase the land, but chose to pay the inflated price instead.

“Isn’t it a GLC? Then why not use the law to take the land. The Act allows the government to take a land for development purposes,” he said.

Former prime minister Tun Dr Mahathir Mohamad made a similar call today, telling the Muslim pilgrims fund that it was overpaying for the deal and pointed out that 1MDB paid RM194 million for the 70 acres in the Tun Razak Exchange, where it will sell 1.5 acres to LTH for a reported RM188 million.

On Wednesday, “The Benchmark” published documents that showed LTH was buying two parcels of land from 1MDB, purportedly for nearly RM800 million.

LTH chairman Datuk Seri Abdul Azeez Abdul Rahim immediately denied this, before the board confirmed the deal next day albeit for one parcel at RM188 million instead of two as initially believed based on the leaked documents.

The confirmation has prompted bipartisan calls from lawmakers and private groups for LTH to explain the “high-risk” transaction.

The Tun Razak Exchange, planned as a 70-acre financial centre within the capital, is one of two high-profile property projects in 1MDB’s portfolio.

1MDB is currently under investigation by the Auditor General’s Department and Parliament’s Public Accounts Committee.